Scottish Widows is the latest life office to contract direct customers back into the state second pension automatically unless they choose otherwise.Widows has written to around 7,500 direct customers telling them that it will contract them back into S2P by the end of January unless they object. This follows similar moves by Prudential and Norwich Union. The customers are all over 50 and are expected by Scottish Widows to lose out financially if they remain con- tracted out. No customer who is known to have an IFA will be contracted back in without a positive instruction to do so. Widows has almost 250,000 customers who are contracted out of S2P through a personal pension. Around 180,000 of these were introduced by IFAs, who retain responsib- ility for advising on contrac- ting out. Head of pensions market development Ian Naismith says: “We have decided to contract some customers back into S2P without an explicit instruction because we believe the risk of financial loss is becoming increasingly high. “The customers we are contracting back in are those who we believe need the highest investment return from their contracted-out pension to match S2P.” All Financial principal John Burrows says: “This is inevitable. Widows is not the first to do this and, from its point of view, in terms of customer care for direct customers and its own profitability, it is sensible.”
Morgan Stanley Investment Management is targeting multi-managers with a new US Sicav and 26 other funds it is making available to UK investors through the creation of distributor share classes.
This month, the Women’s Financial Adviser Group present its 2005 Financial Adviser Women of the Year Awards, which are now into their fourth year. In explaining what the awards represent, the WFG is perhaps best placed to comment itself. It says: “The time had come for women in our sector to be noticed and to […]
Thames River Capital co-head of emerging market equities Rory Landman is retiring from fund management in his late 40s. Landman built his reputation as head of emerging markets at Barings, working alongside head of emerging Europe Martin Taylor. The pair moved to Thames River in 2001 to build its emerging markets team. The team runs […]
Old Mutual has again extended the deadline for Skandia shareholders to accept its offer and believes it is building the momentum to carry the deal through. The South African insurer says 69.7 per cent of Skandia’s shareholders have accepted the bid, which is 5.3 per cent short of the 75 per cent threshold it requires […]
Re-enrolment is a sizeable task, and requires proper planning. You must ensure that eligible staff who are not already in your auto-enrolment pension scheme are put back into it.
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